Latest news with #SkyQuarry
Associated Press
17 hours ago
- Business
- Associated Press
Sky Quarry Applies for Recycling Permit to Launch Integrated Energy Facility in Utah
WOODS CROSS, Utah, June 12, 2025 (GLOBE NEWSWIRE) -- Sky Quarry Inc. (NASDAQ: SKYQ) ('Sky Quarry' or 'the Company'), an integrated energy solutions company committed to revolutionizing the waste asphalt shingle recycling industry, today announced that it has filed a Waste Management Recycling Permit application to Utah regulators. If approved, the permit would allow the Company to operate a combined oil sands extraction and waste asphalt shingle recycling facility at its PR Spring site, unlocking new commercial pathways and expanding revenue-generating operations. The application is accompanied by a request to the School and Institutional Trust Lands Administration (SITLA), the Utah state agency responsible for managing trust lands on behalf of public education, for approval of a combined permit structure. This would allow Sky Quarry and its wholly owned subsidiary, 2020 Resources, to consolidate shingle processing, heavy oil extraction, and asphaltic sand production under a unified sustainable waste energy development plan. If approved, the permit would open the door to several operational initiatives at the PR Spring site, including: Sky Quarry projects a combined recovery of approximately 10 million barrels over a 15-year period from oil sands and recycled shingles, based on the PR Spring facility's operating capacity of 2,000 barrels per day. 'This is a critical step in scaling our waste-to-energy platform and creating multiple revenue streams from a single operational footprint,' said David Sealock, Chief Executive Officer and Chairman of the Board of Sky Quarry. 'It will allow us to showcase how our blended recycling and extraction model functions at a commercial level.' The permit application also represents a meaningful step forward in Sky Quarry's commercial roadmap, aligning with the Company's long-term vision to integrate recycling and resource recovery. It is expected to: Mr. Sealock continued, 'This application and lease proposal reflects our continued progress toward developing scalable, commercially viable solutions that we believe align with Utah's economic and environmental priorities. We look forward to working closely with SITLA and state regulators to move this vision forward.' About Sky Quarry Inc. Sky Quarry Inc. (NASDAQ: SKYQ) and its subsidiaries are, collectively, an oil production, refining, and a development-stage environmental remediation company formed to deploy technologies to facilitate the recycling of waste asphalt shingles and remediation of oil-saturated sands and soils. Our waste-to-energy mission is to repurpose and upcycle millions of tons of asphalt shingle waste, diverting them from landfills. By doing so, we can contribute to improved waste management, promote resource efficiency, conserve natural resources, and reduce environmental impact. For more information, please visit Forward-Looking Statements This press release may include ''forward-looking statements.'' All statements pertaining to our future financial and/or operating results, future events, or future developments may constitute forward-looking statements. The statements may be identified by words such as 'expect,' 'look forward to,' 'anticipate,' 'intend,' 'plan,' 'believe,' 'seek,' 'estimate,' 'will,' 'project,' or words of similar meaning. Such statements are based on the current expectations and certain assumptions of our management, of which many are beyond our control. These are subject to a number of risks, uncertainties, and factors, including but not limited to those described in our disclosures. Should one or more of these risks or uncertainties materialize or should underlying expectations not occur or assumptions prove incorrect, actual results, performance, or our achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. We neither intend, nor assume any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. You are urged to carefully review and consider any cautionary statements and the Company's other disclosures, including the statements made under the heading 'Risk Factors' and elsewhere in the Company's Form 10-K as filed with the SEC on March 31, 2025, as well as the Company's Form 10-Q as filed with the SEC on May 15, 2025. Forward-looking statements speak only as of the date of the document in which they are contained. Investor Relations Jennifer Standley Director of Investor Relations [email protected] Company Website
Yahoo
17 hours ago
- Business
- Yahoo
Sky Quarry Applies for Recycling Permit to Launch Integrated Energy Facility in Utah
'Unlocking New Commercial Pathways and Expanding Revenue-Generating Operations' WOODS CROSS, Utah, June 12, 2025 (GLOBE NEWSWIRE) -- Sky Quarry Inc. (NASDAQ: SKYQ) ("Sky Quarry" or "the Company"), an integrated energy solutions company committed to revolutionizing the waste asphalt shingle recycling industry, today announced that it has filed a Waste Management Recycling Permit application to Utah regulators. If approved, the permit would allow the Company to operate a combined oil sands extraction and waste asphalt shingle recycling facility at its PR Spring site, unlocking new commercial pathways and expanding revenue-generating operations. The application is accompanied by a request to the School and Institutional Trust Lands Administration (SITLA), the Utah state agency responsible for managing trust lands on behalf of public education, for approval of a combined permit structure. This would allow Sky Quarry and its wholly owned subsidiary, 2020 Resources, to consolidate shingle processing, heavy oil extraction, and asphaltic sand production under a unified sustainable waste energy development plan. If approved, the permit would open the door to several operational initiatives at the PR Spring site, including: Commercialization of approximately $1 million in asphaltic sand inventory. Deployment of the Company's ECOSolv process to support on-site heavy oil extraction. Continued advancement of recycled product development through R&D. Demonstration of scalable remediation methods applicable across U.S. markets. Sky Quarry projects a combined recovery of approximately 10 million barrels over a 15-year period from oil sands and recycled shingles, based on the PR Spring facility's operating capacity of 2,000 barrels per day. 'This is a critical step in scaling our waste-to-energy platform and creating multiple revenue streams from a single operational footprint,' said David Sealock, Chief Executive Officer and Chairman of the Board of Sky Quarry. 'It will allow us to showcase how our blended recycling and extraction model functions at a commercial level.' The permit application also represents a meaningful step forward in Sky Quarry's commercial roadmap, aligning with the Company's long-term vision to integrate recycling and resource recovery. It is expected to: Enable early-stage cash flow from asphaltic sand and oil sales. Strengthen the Company's ESG and sustainability profile. Enhance the long-term strategic value of its oil sands assets. Mr. Sealock continued, 'This application and lease proposal reflects our continued progress toward developing scalable, commercially viable solutions that we believe align with Utah's economic and environmental priorities. We look forward to working closely with SITLA and state regulators to move this vision forward.' About Sky Quarry Inc. Sky Quarry Inc. (NASDAQ: SKYQ) and its subsidiaries are, collectively, an oil production, refining, and a development-stage environmental remediation company formed to deploy technologies to facilitate the recycling of waste asphalt shingles and remediation of oil-saturated sands and soils. Our waste-to-energy mission is to repurpose and upcycle millions of tons of asphalt shingle waste, diverting them from landfills. By doing so, we can contribute to improved waste management, promote resource efficiency, conserve natural resources, and reduce environmental impact. For more information, please visit Forward-Looking Statements This press release may include ''forward-looking statements.'' All statements pertaining to our future financial and/or operating results, future events, or future developments may constitute forward-looking statements. The statements may be identified by words such as 'expect,' 'look forward to,' 'anticipate,' 'intend,' 'plan,' 'believe,' 'seek,' 'estimate,' 'will,' 'project,' or words of similar meaning. Such statements are based on the current expectations and certain assumptions of our management, of which many are beyond our control. These are subject to a number of risks, uncertainties, and factors, including but not limited to those described in our disclosures. Should one or more of these risks or uncertainties materialize or should underlying expectations not occur or assumptions prove incorrect, actual results, performance, or our achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. We neither intend, nor assume any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. You are urged to carefully review and consider any cautionary statements and the Company's other disclosures, including the statements made under the heading "Risk Factors" and elsewhere in the Company's Form 10-K as filed with the SEC on March 31, 2025, as well as the Company's Form 10-Q as filed with the SEC on May 15, 2025. Forward-looking statements speak only as of the date of the document in which they are contained. Investor RelationsJennifer Standley Director of Investor RelationsIr@ Company
Associated Press
22-05-2025
- Business
- Associated Press
Sky Quarry Announces Strategic Growth Plan to Achieve Full Production Capacity at its Foreland Refinery
'Scalable roadmap sets stage for up to 800,000 barrels annually through steady operations and targeted investments' WOODS CROSS, Utah, May 22, 2025 (GLOBE NEWSWIRE) -- Sky Quarry Inc. (NASDAQ: SKYQ) ('Sky Quarry' or 'the Company'), an integrated energy solutions company committed to revolutionizing the waste asphalt shingle recycling industry, today announced a comprehensive strategic roadmap for its wholly owned subsidiary, Foreland Refining Corporation ('Foreland'). The plan is designed to scale operations to a sustained production rate of up to 800,000 barrels per year. Titled the 'Path to Full Production,' the phased plan positions Foreland, Nevada's only operating refinery, as a key piece of regional energy infrastructure, helping to stabilize fuel supply across the Western U.S. Each stage is supported by clearly defined operational, technical, and financial benchmarks. The Refinery is currently operating at up to 3,600 barrels per day, with expansion efforts already underway. The roadmap outlines four key production milestones: 45,000, 60,000, 80,000, and 100,000 barrels per month. Foreland expects to reach this peak level during periods of high seasonal demand. These are monthly targets, with production rising in the summer and easing back in winter. At full capacity, this translates to an annualized peak rate of 800,000 barrels, though actual output will vary seasonally. 'This initiative is designed to sharpen our operations and strengthen our bottom line, setting the stage for expected and sustained growth,' said David Sealock, Chairman & CEO of Sky Quarry. 'Refining is a long game, and Foreland is building the foundation to be a high-integrity, high-performance facility for years to come.' Key components of the strategic growth plan include: To support these goals, the Company has implemented a proactive maintenance and risk management framework. Infrastructure upgrades and crude supply contracts are already in progress to ensure safe and uninterrupted operations in anticipation of increased production. 'These projects aren't just about increasing production, they're about building strong teams and lasting systems,' Sealock added. 'I want to thank Cyla Apache, our Vice President, for spearheading this project from concept to implementation with vision and precision. I'm also grateful to our refinery staff for their hands-on expertise, to Kevin Arrington at TAR360 for his guidance, and to the University of Utah research team, whose work is helping us reduce energy use and lower utility costs. We're confident in our path forward and proud of what it means for our community, customers, and shareholders.' The Refinery also intends to expand its capabilities to include recycled heavy oil from waste materials, expected to be sourced from PR Spring. The Company believes this roadmap will help support Sky Quarry's mission to build a more sustainable and resilient energy future through operational excellence, safety, and long-term value creation. About Sky Quarry Inc. Sky Quarry Inc. (NASDAQ:SKYQ) and its subsidiaries are, collectively, an oil production, refining, and a development-stage environmental remediation company formed to deploy technologies to facilitate the recycling of waste asphalt shingles and remediation of oil-saturated sands and soils. Our waste-to-energy mission is to repurpose and upcycle millions of tons of asphalt shingle waste, diverting them from landfills. By doing so, we can contribute to improved waste management, promote resource efficiency, conserve natural resources, and reduce environmental impact. For more information, please visit Forward-Looking Statements This press release may include ''forward-looking statements.'' All statements pertaining to our future financial and/or operating results, future events, or future developments may constitute forward-looking statements. The statements may be identified by words such as 'expect,' 'look forward to,' 'anticipate,' 'intend,' 'plan,' 'believe,' 'seek,' 'estimate,' 'will,' 'project,' or words of similar meaning. Such statements are based on the current expectations and certain assumptions of our management, of which many are beyond our control. These are subject to a number of risks, uncertainties, and factors, including but not limited to those described in our disclosures. Should one or more of these risks or uncertainties materialize or should underlying expectations not occur or assumptions prove incorrect, actual results, performance, or our achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. We neither intend, nor assume any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. You are urged to carefully review and consider any cautionary statements and the Company's other disclosures, including the statements made under the heading 'Risk Factors' and elsewhere in the Company's Form 10-K as filed with the SEC on March 31, 2025. Forward-looking statements speak only as of the date of the document in which they are contained. Investor Relations Jennifer Standley Director of Investor Relations [email protected] Company Website
Globe and Mail
15-05-2025
- Business
- Globe and Mail
Sky Quarry Reports First Quarter 2025 Financial Results
WOODS CROSS, Utah, May 15, 2025 (GLOBE NEWSWIRE) -- Sky Quarry Inc. (NASDAQ: SKYQ) ("Sky Quarry" or "the Company"), an integrated energy solutions company committed to revolutionizing the waste asphalt shingle recycling industry, today announced its financial and operational results for the three months ended March 31, 2025. Key Financial and Operational Highlights Generated $6.3 million in Q1 revenue, a 50% increase from Q4 2024. Signed a Letter of Intent with R & R Solutions, the only permitted asphalt shingle recycler in New Mexico, to explore the feasibility of establishing a modular waste-to-energy site in the Southwest. Executed a Letter of Intent with Southwind RAS, a leading recycler in the Midwest, to collaborate on regional facility deployment and feedstock supply. Engaged TAR360 to accelerate the company's growth trajectory, optimize internal processes, and support execution across key operational initiatives. Commentary by David Sealock, Chairman & Chief Executive Officer, and Darryl Delwo, Chief Financial Officer of Sky Quarry 'We are pleased with the continued growth across our operations and the progress we've made in the first quarter of 2025 toward executing our waste-to-energy strategy, which is central to our mission of transforming recycled asphalt shingles into sustainably produced fuels and other valuable materials. At PR Spring, asset upgrades are nearing completion, and once commissioned, the site will activate our fully integrated production model and enable commercial-scale output. As part of our national expansion strategy, we signed non-binding Letters of Intent with Southwind RAS in the Midwest and R & R Solutions in the Southwest. These LOIs represent an early step in evaluating potential partnerships that could expand Sky Quarry's geographic footprint and provide access to more than 1.5 million tons of asphalt shingle supply annually. If advanced, these relationships could unlock new revenue opportunities through facility development, expanded processing capacity, and the sale of high-value materials such as recycled liquid asphalt, blended fuels, and other products derived from waste asphalt shingles. We're seeing the impact of operational improvements made in 2024 at the Foreland Refinery, with a 50% increase in revenue from Q4 2024 to Q1 2025 as output stabilized and product volumes rebounded. To build on this momentum, we engaged TAR360 to further optimize operations at Foreland. While we're encouraged by recent performance gains, our shared goal is to increase throughput by up to 400% over time, scaling from our current 20,000 barrels per month to as much as 100,000. Achieving this level of production would enhance operating leverage, expand margins, and drive stronger profitability. With these improvements and additional efficiencies underway, we believe Foreland is positioned to play a key role in meeting growing fuel demand across the Western U.S. California's refining capacity is expected to decline by 21% in a single year due to major facility closures, while global price spreads and supply constraints are creating price dislocations that make local refining more competitive. As market conditions continue to evolve, we are executing with purpose by scaling production, improving performance, and positioning Sky Quarry for a strong 2025.' Financial Results for the Three Months Ended March 31, 2025 Total revenues for the first quarter ended March 31, 2025, were approximately $6.3 million, down from $11.0 million in the same period of 2024. This decline was primarily driven by ongoing challenges in reestablishing supply streams following the Foreland Refinery outage and refurbishment in mid-2024. In addition, lower commodity prices contributed to the decrease, with WTI crude falling from $87 per barrel in April 2024 to $71 per barrel at the end of Q1 2025. Gross profit for the quarter was negative $726,000, compared to a gross profit of $569,000 in the prior-year period. Total operating expenses increased to $1.94 million in Q1 2025, up from $1.61 million in Q1 2024, reflecting higher general and administrative costs, non-cash share-based compensation, and depreciation. As a result, the Company reported a net loss of $3.3 million for the first quarter of 2025, compared to a net loss of $2.5 million in the same period last year. Net cash used in operating activities for the three months ended March 31, 2025, was approximately $2.0 million, compared to $1.2 million for the same period in 2024. About Sky Quarry Inc. Sky Quarry Inc. (NASDAQ:SKYQ) and its subsidiaries are, collectively, an oil production, refining, and a development-stage environmental remediation company formed to deploy technologies to facilitate the recycling of waste asphalt shingles and remediation of oil-saturated sands and soils. Our waste-to-energy mission is to repurpose and upcycle millions of tons of asphalt shingle waste, diverting them from landfills. By doing so, we can contribute to improved waste management, promote resource efficiency, conserve natural resources, and reduce environmental impact. For more information, please visit Forward-Looking Statements This press release may include ''forward-looking statements.'' All statements pertaining to our future financial and/or operating results, future events, or future developments may constitute forward-looking statements. The statements may be identified by words such as 'expect,' 'look forward to,' 'anticipate,' 'intend,' 'plan,' 'believe,' 'seek,' 'estimate,' 'will,' 'project,' or words of similar meaning. Such statements are based on the current expectations and certain assumptions of our management, of which many are beyond our control. These are subject to a number of risks, uncertainties, and factors, including but not limited to those described in our disclosures. Should one or more of these risks or uncertainties materialize or should underlying expectations not occur or assumptions prove incorrect, actual results, performance, or our achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. We neither intend, nor assume any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. You are urged to carefully review and consider any cautionary statements and the Company's other disclosures, including the statements made under the heading "Risk Factors" and elsewhere in the Company's Form 10-K as filed with the SEC on March 31, 2025. Forward-looking statements speak only as of the date of the document in which they are contained. LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $ 3,233,613 $ 4,046,319 Current portion of operating lease liability 81,775 38,422 Current portion of finance lease liability 16,626 16,120 Warrant liability 184,087 459,067 Lines of credit 2,328,127 1,260,727 Current maturities of notes payable 6,164,310 6,578,017 Total current liabilities 12,008,538 12,398,672 Notes payable, less current maturities, net of debt issuance costs 1,999,999 2,000,560 Operating lease liability, net of current portion 15,613 77,824 Finance lease Liability, net of current portion 987,018 971,690 Total Liabilities 15,011,168 15,448,746 Commitments and contingencies Shareholders' Equity: Preferred stock $0.001 par value: 25,000,000 shares authorized; 0 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively - - Common stock $0.0001 par value: 100,000,000 shares authorized: 21,260,924 and 19,027,208 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively 2,126 1,903 Additional paid in capital 37,088,388 35,674,391 Accumulated other comprehensive loss (209,286) (209,708) Accumulated deficit (27,301,783) (23,968,089) Total shareholders' equity 9,579,445 11,498,497 Total liabilities and shareholders' equity $ 24,590,613 $ 26,947,243 Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 Net sales $ 6,332,967 $ 10,952,330 Cost of goods sold 7,059,059 10,382,881 Gross Margin (726,092) 569,449 Operating expenses: General and administrative 1,935,457 1,607,884 Depreciation and amortization 2,028 1,472 Total Operating expenses 1,937,485 1,609,356 Loss from operations (2,663,577) (1,039,907) Other income (expense): Interest expense (872,468) (1,308,445) Loss on extinguishment of debt (85,753) (108,887) Gain on warrant valuation 274,980 - Other income (expense) 7,477 (5,306) Gain on sale of assets 5,647 - Other expense, net (670,117) (1,422,638) Loss before provision for income taxes (3,333,694) (2,462,545) Provision for income taxes - - Net loss (3,333,694) (2,462,545) Other comprehensive income (loss) Exchange gain (loss) on translation of foreign operations 422 (8,134) Net loss and comprehensive loss $ (3,333,272) $ (2,470,679) Loss per common share Basic and diluted $ (0.16) $ (0.15) Weighted average shares outstanding Basic and diluted 21,264,725 16,334,862 Sky Quarry Inc. Consolidated Statements of Cash Flows For the Three Months Ended March 31, 2025 and 2024 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (3,333,694) $ (2,462,545) Adjustments to reconcile net loss to cash used in operating activities: Share based compensation 78,880 270,176 Depreciation and amortization 242,004 164,534 Amortization of debt issuance costs 765,793 1,166,227 Amortization of right-of-use asset 24,129 21,952 Gain on revaluation of warrant liabilities (274,980) - Loss on extinguishment of debt 56,660 108,887 Gain on sale of assets (5,647) - Changes in operating assets and liabilities: Accounts receivable (634,263) (766,259) Prepaid expenses and other assets (302,302) (323,750) Inventory 1,045,857 203,235 Accounts payable and accrued expenses 373,889 371,043 Operating lease liability 450 21,952 Net cash used in operating activities (1,963,224) (1,224,548) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of assets 14,060 - Purchase of exploration and evaluation assets (297,389) (144,964) Purchase of property, plant, and equipment (32,881) (282,702) Net cash used in investing activities (316,210) (427,666) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds on lines of credit 5,339,736 10,641,448 Payments on lines of credit (4,272,336) (11,638,704) Proceeds from note payable 143,237 9,820,288 Payments on note payable (1,231,214) (5,300,608) Warrants Issued (net against payment of debt issuance costs) - Debt discount on note payable (1,970,936) Payments on finance lease (3,473) (19,851) Proceeds on issuance of preferred stock 197,500 Preferred stock offering costs (40,870) Proceeds on issuance of common stock 19,492 Common stock offering costs - Net cash provided by (used in) financing activities (24,050) 1,707,755 Effect of exchange rate on cash 422 (8,134) Increase (decrease) in cash and restricted cash (2,303,062) 47,407 Cash and restricted cash, beginning of the period 3,314,913 4,680,836 Cash and restricted cash, end of the period $ 1,011,851 $ 4,728,243
Yahoo
15-05-2025
- Business
- Yahoo
Sky Quarry Reports First Quarter 2025 Financial Results
WOODS CROSS, Utah, May 15, 2025 (GLOBE NEWSWIRE) -- Sky Quarry Inc. (NASDAQ: SKYQ) ("Sky Quarry" or "the Company"), an integrated energy solutions company committed to revolutionizing the waste asphalt shingle recycling industry, today announced its financial and operational results for the three months ended March 31, 2025. Key Financial and Operational Highlights Generated $6.3 million in Q1 revenue, a 50% increase from Q4 2024. Signed a Letter of Intent with R & R Solutions, the only permitted asphalt shingle recycler in New Mexico, to explore the feasibility of establishing a modular waste-to-energy site in the Southwest. Executed a Letter of Intent with Southwind RAS, a leading recycler in the Midwest, to collaborate on regional facility deployment and feedstock supply. Engaged TAR360 to accelerate the company's growth trajectory, optimize internal processes, and support execution across key operational initiatives. Commentary by David Sealock, Chairman & Chief Executive Officer, and Darryl Delwo, Chief Financial Officer of Sky Quarry 'We are pleased with the continued growth across our operations and the progress we've made in the first quarter of 2025 toward executing our waste-to-energy strategy, which is central to our mission of transforming recycled asphalt shingles into sustainably produced fuels and other valuable materials. At PR Spring, asset upgrades are nearing completion, and once commissioned, the site will activate our fully integrated production model and enable commercial-scale output. As part of our national expansion strategy, we signed non-binding Letters of Intent with Southwind RAS in the Midwest and R & R Solutions in the Southwest. These LOIs represent an early step in evaluating potential partnerships that could expand Sky Quarry's geographic footprint and provide access to more than 1.5 million tons of asphalt shingle supply annually. If advanced, these relationships could unlock new revenue opportunities through facility development, expanded processing capacity, and the sale of high-value materials such as recycled liquid asphalt, blended fuels, and other products derived from waste asphalt shingles. We're seeing the impact of operational improvements made in 2024 at the Foreland Refinery, with a 50% increase in revenue from Q4 2024 to Q1 2025 as output stabilized and product volumes rebounded. To build on this momentum, we engaged TAR360 to further optimize operations at Foreland. While we're encouraged by recent performance gains, our shared goal is to increase throughput by up to 400% over time, scaling from our current 20,000 barrels per month to as much as 100,000. Achieving this level of production would enhance operating leverage, expand margins, and drive stronger profitability. With these improvements and additional efficiencies underway, we believe Foreland is positioned to play a key role in meeting growing fuel demand across the Western U.S. California's refining capacity is expected to decline by 21% in a single year due to major facility closures, while global price spreads and supply constraints are creating price dislocations that make local refining more competitive. As market conditions continue to evolve, we are executing with purpose by scaling production, improving performance, and positioning Sky Quarry for a strong 2025.' Financial Results for the Three Months Ended March 31, 2025 Total revenues for the first quarter ended March 31, 2025, were approximately $6.3 million, down from $11.0 million in the same period of 2024. This decline was primarily driven by ongoing challenges in reestablishing supply streams following the Foreland Refinery outage and refurbishment in mid-2024. In addition, lower commodity prices contributed to the decrease, with WTI crude falling from $87 per barrel in April 2024 to $71 per barrel at the end of Q1 2025. Gross profit for the quarter was negative $726,000, compared to a gross profit of $569,000 in the prior-year period. Total operating expenses increased to $1.94 million in Q1 2025, up from $1.61 million in Q1 2024, reflecting higher general and administrative costs, non-cash share-based compensation, and depreciation. As a result, the Company reported a net loss of $3.3 million for the first quarter of 2025, compared to a net loss of $2.5 million in the same period last year. Net cash used in operating activities for the three months ended March 31, 2025, was approximately $2.0 million, compared to $1.2 million for the same period in 2024. About Sky Quarry Inc. Sky Quarry Inc. (NASDAQ:SKYQ) and its subsidiaries are, collectively, an oil production, refining, and a development-stage environmental remediation company formed to deploy technologies to facilitate the recycling of waste asphalt shingles and remediation of oil-saturated sands and soils. Our waste-to-energy mission is to repurpose and upcycle millions of tons of asphalt shingle waste, diverting them from landfills. By doing so, we can contribute to improved waste management, promote resource efficiency, conserve natural resources, and reduce environmental impact. For more information, please visit Forward-Looking Statements This press release may include ''forward-looking statements.'' All statements pertaining to our future financial and/or operating results, future events, or future developments may constitute forward-looking statements. The statements may be identified by words such as 'expect,' 'look forward to,' 'anticipate,' 'intend,' 'plan,' 'believe,' 'seek,' 'estimate,' 'will,' 'project,' or words of similar meaning. Such statements are based on the current expectations and certain assumptions of our management, of which many are beyond our control. These are subject to a number of risks, uncertainties, and factors, including but not limited to those described in our disclosures. Should one or more of these risks or uncertainties materialize or should underlying expectations not occur or assumptions prove incorrect, actual results, performance, or our achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. We neither intend, nor assume any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. You are urged to carefully review and consider any cautionary statements and the Company's other disclosures, including the statements made under the heading "Risk Factors" and elsewhere in the Company's Form 10-K as filed with the SEC on March 31, 2025. Forward-looking statements speak only as of the date of the document in which they are contained. Investor RelationsJennifer Standley Director of Investor RelationsIr@ Quarry Balance SheetsAs of March 31, 2025 and December 31, 2024 March 31, 2025 December 31, 2024 ASSETS Current assets: Cash $ 213,000 $ 385,116 Accounts receivables 1,758,159 1,123,897 Prepaid expenses and other assets 641,427 339,124 Inventory 2,103,379 3,149,236 Total current assets 4,715,965 4,997,373 Property, plant, and equipment 5,942,782 6,160,318 Oil and gas properties 8,832,356 8,534,967 Restricted cash 798,851 2,929,797 Right-of-use asset 1,091,656 1,115,785 Goodwill 3,209,003 3,209,003 Total assets $ 24,590,613 $ 26,947,243LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $ 3,233,613 $ 4,046,319 Current portion of operating lease liability 81,775 38,422 Current portion of finance lease liability 16,626 16,120 Warrant liability 184,087 459,067 Lines of credit 2,328,127 1,260,727 Current maturities of notes payable 6,164,310 6,578,017 Total current liabilities 12,008,538 12,398,672 Notes payable, less current maturities, net of debt issuance costs 1,999,999 2,000,560 Operating lease liability, net of current portion 15,613 77,824 Finance lease Liability, net of current portion 987,018 971,690 Total Liabilities 15,011,168 15,448,746 Commitments and contingencies Shareholders' Equity: Preferred stock $0.001 par value: 25,000,000 shares authorized; 0 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively - - Common stock $0.0001 par value: 100,000,000 shares authorized: 21,260,924 and 19,027,208 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively 2,126 1,903 Additional paid in capital 37,088,388 35,674,391 Accumulated other comprehensive loss (209,286 ) (209,708 ) Accumulated deficit (27,301,783 ) (23,968,089 ) Total shareholders' equity 9,579,445 11,498,497 Total liabilities and shareholders' equity $ 24,590,613 $ 26,947,243 Sky Quarry Statements of Operations and Comprehensive LossFor the Periods Ended March 31, 2025 and 2024 Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 Net sales $ 6,332,967 $ 10,952,330 Cost of goods sold 7,059,059 10,382,881 Gross Margin (726,092 ) 569,449 Operating expenses: General and administrative 1,935,457 1,607,884 Depreciation and amortization 2,028 1,472 Total Operating expenses 1,937,485 1,609,356 Loss from operations (2,663,577 ) (1,039,907 ) Other income (expense): Interest expense (872,468 ) (1,308,445 ) Loss on extinguishment of debt (85,753 ) (108,887 ) Gain on warrant valuation 274,980 - Other income (expense) 7,477 (5,306 ) Gain on sale of assets 5,647 - Other expense, net (670,117 ) (1,422,638 ) Loss before provision for income taxes (3,333,694 ) (2,462,545 ) Provision for income taxes - - Net loss (3,333,694 ) (2,462,545 ) Other comprehensive income (loss) Exchange gain (loss) on translation of foreign operations 422 (8,134 ) Net loss and comprehensive loss $ (3,333,272 ) $ (2,470,679 ) Loss per common share Basic and diluted $ (0.16 ) $ (0.15 ) Weighted average shares outstanding Basic and diluted 21,264,725 16,334,862 Sky Quarry Statements of Cash FlowsFor the Three Months Ended March 31, 2025 and 2024 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (3,333,694 ) $ (2,462,545 ) Adjustments to reconcile net loss to cash used in operating activities: Share based compensation 78,880 270,176 Depreciation and amortization 242,004 164,534 Amortization of debt issuance costs 765,793 1,166,227 Amortization of right-of-use asset 24,129 21,952 Gain on revaluation of warrant liabilities (274,980 ) - Loss on extinguishment of debt 56,660 108,887 Gain on sale of assets (5,647 ) - Changes in operating assets and liabilities: Accounts receivable (634,263 ) (766,259 ) Prepaid expenses and other assets (302,302 ) (323,750 ) Inventory 1,045,857 203,235 Accounts payable and accrued expenses 373,889 371,043 Operating lease liability 450 21,952 Net cash used in operating activities (1,963,224 ) (1,224,548 ) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of assets 14,060 - Purchase of exploration and evaluation assets (297,389 ) (144,964 ) Purchase of property, plant, and equipment (32,881 ) (282,702 ) Net cash used in investing activities (316,210 ) (427,666 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds on lines of credit 5,339,736 10,641,448 Payments on lines of credit (4,272,336 ) (11,638,704 ) Proceeds from note payable 143,237 9,820,288 Payments on note payable (1,231,214 ) (5,300,608 ) Warrants Issued (net against payment of debt issuance costs) - Debt discount on note payable (1,970,936 ) Payments on finance lease (3,473 ) (19,851 ) Proceeds on issuance of preferred stock 197,500 Preferred stock offering costs (40,870 ) Proceeds on issuance of common stock 19,492 Common stock offering costs - Net cash provided by (used in) financing activities (24,050 ) 1,707,755 Effect of exchange rate on cash 422 (8,134 ) Increase (decrease) in cash and restricted cash (2,303,062 ) 47,407 Cash and restricted cash, beginning of the period 3,314,913 4,680,836 Cash and restricted cash, end of the period $ 1,011,851 $ 4,728,243 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
